Income and wealth distribution by state

Monday, September 12, 2016

High wealth, high income

What are the high wealth, high income states? Western Australia is leading in terms of both income and wealth, with $133,224 and $952,500 respectively, which is well above the average household annual gross income of $107,276 and average household net worth of $809,900.

However, over the last year particularly, the impact of the mining slowdown has affected earnings and also wealth. The reliance on the mining sector and the fluctuation of income and wealth based on the fortunes of this one sector are highlighted in the fact that between 2012 and 2014, the household incomes of those in Western Australia rose by 21% which was almost double that seen in the leading east coast state of New South Wales, and the wealth in this 2 year period increased by 24%, again almost double on what we saw from the best performing east coast states.

Top performing states

New South Wales is the most consistent performer in wealth and income, and the only other state to have both income and wealth about the national average (12% on income and 13% on wealth). It has a stable economy, with the largest infrastructure investments in the nation, a broad base of industries and consequently solid forward forecasts.

The Northern Territory, like Western Australia has been fluctuating, and while it has average income above the national average, its wealth is below the national average. Queensland, while improving in both income and wealth is below the national average on both as well. And Victoria while seeing solid gains in both income and wealth, with wealth largely due to the housing market above the national average, its income has still not quite reached the national average.

Worst performing states

The worst performing states are Tasmania, with incomes 26% below the national income and wealth average, as well as South Australia which is 19% below the average household income and 20% below the national net wealth.

While household income gains have been low in some states (a total of 6% gain since 2012 in South Australia, Tasmania and the Australian Capital Territory over the last 2 years), at least all of the states have had an increase in incomes, but such has been the change in property prices and the rise in living costs, the Northern Territory, South Australia, Tasmania and the Australian Capital Territory have all seen a slight fall in average household wealth since 2012.

The New Australian Dream

Thursday, September 01, 2016


Owning your own four bedroom house on a decent block of land with a big backyard and outdoor swimming pool used to be the quintessential 'Great Australian Dream'. But with rising property prices and increased living costs, that dream is being redefined.

what is the Average Australian Profile?

The average full time annual income in Australia is $80,000, which is bumped up a bit because of high income earners. Even though we are living longer now than a generation ago, the average retirement age is little changed, at 61.5 years.

The cost of housing is up with average rent prices per week at $485/week and the average house price (capital city) is $765,730. In Melbourne it is well above this and in Sydney it is around $1 million. This is where the challenge is for Australians: 40 years ago the average house price was around 5 time’s average earnings and now you can see it is almost 10 times the average annual fulltime earnings.

Other than affordability, what else are Aussies looking for?

Lifestyle is key. People are opting to live in higher density areas for the sake of convenience and location- within close proximity to transport, restaurants – the café culture as it has been called. Our Urban Living Index shows a strong correlation between the most urban/densified suburbs and those with the highest liability ratings.

Australians are opting for a lifestyle of Minimalism - we are 'decluttering' our lives and putting more value on the intangibles like travel. Generation Y aren’t opting for a big home with garages to store all their stuff but more of a focus on the easy-livability of apartment living. Indeed many baby boomers are downsizing from their larger homes in the suburbs to this style of living too.

Renting, as opposed to buying, what some of the benefits?

The ability to change locations easily is well regarded – the average Australian renter stays just 1.8 years per home. Our research shows that 1 in 3 renters are actually 'choice renters' and they choose to rent for lifestyle reasons, not primarily for affordability reasons. These choice renters are twice more likely to be living in medium and high density housing than the average Australian and they are almost 10 years younger than the average Australian. The ability to upsize and downsize easily and the flexibility to travel for extended periods of time is a driver for them. ‘Rentvesting’ is also becoming a ‘thing’. This is where people choose to rent in an area they like, but buy somewhere more affordable and use this as an investment

Generation Y are struggling to attain the Great Australian Dream – are they going to be ok?

There is a challenge emerging of "generational inequity" as shown by this infographic:

Gen Y’s have the least wealth of the working generations and their proportion of Australia’s wealth is less than half their demographic share, while the Baby Boomers who are a quarter of the population, own more than half of Australia’s wealth. (More information on this topic can be found here)

This is why Gen Y is reinventing the Aussie Dream and while they do still like the idea of owning something of their own, it is not just the big home with the back yard in the suburbs. But many in this generation will be absolutely fine thanks to the massive intergenerational wealth transfer set to happen in the next 20 years as those aged over 65 transfer much of their total wealth of $2.5 trillion.

Wealth and Income Distribution State V State

Monday, July 25, 2016


Australia has long been considered the land of the middle class, but in recent years the gap has been widening between the rich and the poor. When it comes to the battle of the states, which corner of Australia scores the highest and the lowest on the income and wealth report? Will the Baby Boomer generation continue their stronghold on our national wealth?

Is Australia still the land of the middle class?

It is hanging in there, but it’s under pressure. We have seen some hollowing out in the middle of the earnings and a bit of spread to either end. The average annual household earnings are around $107,000 however the lowest fifth of households earn 20% of this while the top fifth average almost three times this. That means that the top fifth of households are taking home about 12 times what the bottom fifth of households are earning.

Most Aussies have their wealth tied up in their homes, how does ownership compare with the top, middle and lower classes?

The average wealth (if you liquidate everything and pay off all your debts, what are you left with) is about $800,000. The bottom 1 in 5 have a net worth of just $35,000, the top 20% of all household have a net worth of about $2,500,000. That means that the top fifth of households have about 62% of Australia’s wealth, and the bottom fifth take less than 1% of Australia’s national private wealth. So that's a big difference in wealth across these households.

Which states are best and worst performers when we are looking just at income?

The mining boom in WA has really done a great thing over there and so they are leading the earnings chart, with the ACT not too far behind with public servant wages doing pretty well. At the bottom of the tree you have Tasmania, earning about $50,000 less per annum, per household, than what we have in the west.

Welcome to our blog...

We have a passion for research that tells a story, that can be presented visually, that brings about change and improves organisations. And we hope these resources help you know the times.

Our Social Media Sites

Facebook | McCrindle Research Social Media YouTube | McCrindle Research Social Media Twitter | McCrindle Research Social Media Flickr | McCrindle Research Social Media Pinterest | McCrindle Research Social Media Google Plus | McCrindle Research Social Media LinkedIn | McCrindle Research Social Media Mark McCrindle Slideshare


Last 150 Articles


Tags

TED Love visualisation deloitte vegemite baby boomers weekly earnings housing growth monarchy public holiday small business average sydneysider cartodb Financial Planning Association capital cities business sydneycity giving research visualisation Charlotte changing face of sydney January 26th coffee lovers population growth parents mining boom finance McCrindle Speaker food media Willowdale apartment events "know the times" What is food insecurity? DIY wage social impact future-proof bus wages water research data language newspaper English children professional youth contiki family names February 16 curiosity blaxland mateship Social Trend annual income social researchers keynote speaker story NFP event media release presentation optus owning a home life urban living leadership workshop baby name trends FOMO digital economy screenage wellbeing outsourcing the average aussie 40 million Res Vis society sun Education Future Forum teach tv Northern Beaches Queensland Work place 1968 google millionth demographic trends community engagement australian communities forum gig Births eliane miles 2013 Royals couple households research services tea entrepreneurs of today surname screenagers data workshop office socialising leadership post rationalism personal growth relational religion school faux-cilise spend hopes seasons DESTEL Hornsby Shire Council population milestone twentyseventeen group session litter video marrickville student Canberra social commentary census fail click office opening generation alpha Sydney keynote speaker technology hobart growing population gender urban living index 2017 faux-cilising mccrindle in the media millennials online presentations social issues average aussie Sydney population Myth conferences SMART dreaming TAS national private wealth award winner schools students snapshot insights speajer shifts volunteers Christchurch chairty princess charlotte IT Specialists Queensland: QLD Australian Trends tableau increasing densification parenting meetings alpha australians staying home more ACF 2016 Australian Bureau of Statistics nfp unaffordable narcissism NBRS business performance trades communicate financial planning summer CBD media activity society trends employmer care support visual ferry city young australians Christmas data village innovation intern Black Friday volunteer ACF2017 suburbs australian community trends report public speaking acf15 sector wide Australians daily telegraph the hills shire focus groups trends of 2017 social life sydneysider engagement moderators guide world year 7 casual work internships darwin mover and shaker renter of the future tuesday speakers Elderslie-Harrington park impact home sydney market social analyst housing trends demography learn marketing real aged care child care publication social shifts organisations research on coffee priorities suburb christmas 2017 gig economy demographic grandparents Christmas lunch global financial crisis do people still change their surname after marriage? Sydney’s south west ease of travel census results baby boom bondi learning styles father's day townhouses sentiments christian NSW research pack anzac local community budget sunny days generational trends maiden names infographic wall commuters Research Executive states perth teachers Kiwi market research shopper's pick kate middleton Kirsten Brewer Aussies christmas SMSF award brands participants australian census hornsby church census data commute high school domestic group professional presenters Financial Planning Association of Australia 2016 census results average Australian youth unemployment victoria System's Architect social analysis optimistic shbc goals ashley fell who is generation z the australian dream car dare to dream healthy future cash study charities bureau holidays income education future report EFF politics ACT Report 1994 capital city young people sydneysiders not-for-profit university degree survey office space housing case study mother's day paying to work Hunter Valley training trend Australian Population social change conference speaker emerging technologies collaboration going out Research Director workforce research supply and demand sydney event thought leadership marriage Christmas day weather Deaths stay home workplace culture REIV National Conference Wellington researcher social media 2014 cancelling event winter blues New Zealand facts results Wagga Wagga royal family social employment Aussie trends of 2016 Vocational education staying in baby name Geoff Brailey professional services debt pharmacy university learning Financial Planning Week speaker poker master Western Australia financial future Australian Families huffington post generation Z FPA know the times ageing population business index donation communities local communities TDE energy entrepreneur recap royal resource 2016 census shopping centre royal baby easter forum ideas logan living emerging generations research report hills shire career affordable students residents criminal communications low density culture property development urban development forecast cancel plans 2020 house price demographics maiden local education choice workers leader demographic transformations teaching McCridle eliane cost of living coffee long weekend motivate consumer Word Up geomapping world youth day Mark McCrindle shopping Channel Seven Territory money work mates financial independence high density cooking responsive Hills Shire Council Valentine’s Day Christmas in Australia global generations safe work-life sunburnt country dream etiquette google for education education future growth of sydney aussie culture earn rent ACF debate focus group Real Estate consumerism australia the changing face of friends data analyst property market australian social research work from home Gen Y neutral bay generations 1980 quote food bank brand experience women demographer millenials education research 23 million retirement tips relevant 2015 australian communities trends report challenge breakfast overcast Caregiver communication GPO volunteering gen alpha report Cobbitty-Leppington CPI nativity scene transport hello fresh TED talk ipswich TEDx Speaker ACF17 mccrindle tea crime year 12 brand educated Generation X Australia street pharmacies sector baby travel statistics Merry Christmas organisational culture apartments daily commute builders balance skills Assistant Store Manager professional development Australian community trends NBRS Architecture World Water Day not for profit research new york times school students forecasting Christmas day #censusfail mentor waverton culturally diverse Real Estate Institute of Victoria Australian communities workplace potts point Adelaide younger generations future of education infographics WA slideshare renting customer clothing optus my business awards high density apartments wedding analysis Christmas presents affordability list Christmas Stats middle class financial wealth wealth distribution 2012 baby names Jura Coffee poor financial fears sector wide study typical australian graphs crows nest Jura Australia fears The ABC of XYZ follow micro megatrends Northern beaches Event cold infographic REIV Conference charity qualitative research national crime rates news employmee global christianity men Mark McCrindle in the media program experience rise of local baby names australia report social trends tertiary education Lower Hunter Region Generation Y HSC future proof Retail wealth and income digital trends analyst divorce investing mccrinlde earning ageing meals Melbourne Performance Sentiment Index The Daily Edition easy rider jobs aged care puzzle repayments SRE Sydney Population Clock keynote moreton bay government South Australia Christmas research entertainment sydney property market US donate James Ward 2016 vegetarian sydney hills social research NEETs state plans showreel teleworking storytelling cultural diversity house price rise NT greatness McCrindle Keynote Speakers Sydney Lifestyle Study Australian schools networking marriages public transport omnibus housing affordability data visualisation home owner VIC travelling baby name predictions micro apartments earnings mccrindle research property price prince george unemployment ACT community event global retail 24,000,000 mccrindle sydney metro buildings Scouts employers conference presentation rain housing market hills SA food insecurity survey design rich school satisfaction environmental scanning Duchess of Cambridge winter property the lucky country social lives equip Bathburst in the media Business analysis event not for profit Australia Day christmas trees high density living ABS land of the middle class cancelling plans authenticity internship speakers pack non profit social enquiry cloudy days JOMO jobs of the future live the dream cost sydney speaker brisbane urban taskforce leadersip Tuesday Trend the hills learner wealth inequality selfie celebration thrive surnames norwest Tasmania Australian Dream media commentary change tattoos commuting medicine spirituality McCrindle Speakers staff PSI Northern Territory toys holiday Do It Yourself salary generation teacher divorce rate New Zeland Netflix investment future of shopping home ownership pyrmont Gen X belief professional speaker hunger define education sector innovative public speaker TEDx new office weather purpose future proofing wealth and income distribution VET cica national wealth mobile educhat growth suburban living wolloomooloo environment families New South Wales area identity interactive 10 years mythbusters futurist Christmas season australian real estate friendship faux-ciliser the great screenage cultural diveristy schools population trends lifestyle future Andrew Duffin grave decision offenders rule keeper dessert mythbusting 1975 community cars insight royal influence internet economy economic Black Friday Sales rising house prices faith lalor park mortgage careers investor Australian Home entrepreneurial in depth interviews collaborative house prices Wodonga house engage online shopping goal sports fresh Engineering Manager train gold coast stats panel trend tuesday menai Mount Annan-Currant Hill social commentator future of work ashley mckenzie volunteering data product rental stress socialites Australia Day 2017 gen z dreams seasons greetings Australian demographics proactive HR woolworths 24 million sustainable personalities Channel 7 conference baby names report social researcher Gen Z Expert household Crime Rates resilience financial dreams happiness happy holidays Skilling Black Friday in Australia Australian Census Australian Communities Trends Macquarie University Sydney Hills Business Chamber ethnography census 2016 Tuesday Trends population map urban Northern Beaches Christian School emerging trends VET sector manly ultimo Maxim Accounting Lower Hunter

Archive